June 29, 2018 Comments (0) Blog, Current Investigations

CNL Healthcare Properties, Inc. – Securities Investigation

CNL Healthcare Properties
(Last Updated On: July 10, 2018)

CNL Healthcare Properties – Investment Losses

Have you suffered investment losses in CNL Healthcare Properties? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

CNL Financial Group, Inc. is a private investment management firm providing global real estate and alternative investment opportunities, according to its website.

CNL often raises money for investments through Reg D private placement offerings like the company did for CNL Healthcare Properties.  These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.

CNL Healthcare Properties is a non-traded real estate investment trust (REIT) that invests in the seniors housing and healthcare markets sponsored by CNL. The REIT launched in 2011 and made its first investment in early 2012.

Update on CNL Healthcare Properties

According to recent SEC filings, the board of CNL Healthcare Properties Inc., has appointed a special committee of its independent directors to evaluate strategic alternatives in order to provide liquidity to shareholders. The company also named financial advisors to assist in the process.

Strategic alternatives may include listing the company’s common stock on a national exchange; selling the company or its assets and distributing the net proceeds to shareholders; or merging with a third party that would provide shareholders with cash and/or securities of a publicly traded company.

The trouble with alternative investment products, like CNL Healthcare Properties, is that they involve a high degree of risk. They are also typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.

The White Law Group continues to investigate the liability that brokerage firms may have for improperly selling private placements like CNL Healthcare Properties to investors.

Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.

Reg D private placements are also known for high sales commissions and due diligence fees. Brokers have an enormous incentive to push these products to unsuspecting investors who do not fully understand the risks. Sometimes brokers misrepresent the basic features of the products – usually focusing on the income potential and tax benefits while downplaying the risks.

Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes. If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.

Recovery of Investment Losses

To determine whether you may be able to recover investment losses incurred as a result of your purchase of CNL Healthcare Properties or another CNL private placement investment, please contact The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. The firm represents investors throughout the country in claims against their brokerage firm.

For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.

 

 

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